Bunching deductions helped lower the tax rate. With hindsight, for a tIRA mostly in equities 2010 was a great time to convert. By deferring tax payment about 3 years, there was additional time for investment returns, plus inside the Roth the boost in stock prices since 2010 is all tax-free.

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I don't get how you could've only paid 34K tax on a 400K conversion. I understand that you were able to split it between 2011 and 2012, so that's $200K/yr. If you were able to deduct $50K off of that each year, I still come up with about $30K (35K if single) tax each year, or 60K total.

I did the exact same thing in 2010 but I only converted 40 thousand. I had to pay 6000(15%) split evenly between 2011 and 2012 which I just payed. I did that because I was in the 15% nominal bracket in 2011 and 2012 because I "semi retired" and my income was small enough.

The only thing I can think of is that the OP had significant deductions in 2011 and 2012 to bring the tax liability way down. Unfortunately (though I prefer fortunately) because I live way below my means and have no mortgage or any kind of debt we (wife and I) can only use the standard deductions.

More than just what's been mentioned can offset the conversion income, for example, there are also business losses. I suppose bunching into 2011 and 2012 means more taxes in 2010 and 2013, but OTOH that's the purpose of bunching: use it when it works best, such as when things like IRA conversion would otherwise push up the marginal rate.

Did anyone else do a bulk conversion to Roth in 2010 and spread out the tax bite?

Ok, so you had far more losses and deductions than I do. I had about the same in a tIRA and knew I'd still have some wages and an exit package in 2011 so I just took smaller conversions each year and didn't defer the tax. The timing and execution sounds like it was perfect for you.

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